Tag Archives: Youtube

Lightweight models and cost effective scalability: YouTube

15 May

This is the last blog post of the 8 core patterns in web 2.0 ingredients. This time I would like to talk about Lightweight models and cost effective scalability. Lightweight models and cost effective scalability or a simple short “Doing More with Less” is the strategy to deliver products to the market faster and cheaper without sacrificing future growth.

The old business model used to be the form of investing the large amount of money to get started business but no one can guarantee you will gain the profit or failure. However, the new business model in the modern world is not depended on large budgets or large development team anymore. It is because the lightweight models can be applied to reduce the risk and many traditional costs.

YouTube can be one of the successful sites that applied the Lightweight models and cost effective scalability. YouTube is a website built for Internet users to share video clip. More than 65,000 videos have been uploaded on YouTube every day. When many users view the video on YouTube, YouTube has to deal with the bandwidth problem from their services. As it happened, YouTube, which bought by Google in 2006 decided to use the outsource service provided by “Limelight Networks” instead. Limelight is the fast-growing content distribution network. It is also handle video streaming for YouTube and that mean YouTube was able to scale its business easier than if it had attempted to manage these services in-house.

Moreover, YouTube uses business revenue model to maintain effectiveness as the business grows. Revenue model or the advertising model is enabled advertisers to place the commercial in the “ad breaks” within an online stream of a video. YouTube also put the enforcement of a 10 minute time limit on video clips. If your video content is greater than 10 minutes, you must use a premium service.

So as you can see, YouTube has applied the lightweight business models and it certainly looks like a successful business model. However, YouTube is still growing. This may be we can see more options in YouTube revenue models in the near future.